Friday, September 12, 2008

Starting your savings plan...

All of us are frugal for different reasons and in different seasons in our lives. Here are some possibilities:
  1. The thrill of the hunt
  2. Necessity
  3. Trying to get out of debt
  4. Saving for something (home, vacation, etc.)

Or it could be a combination of all of them or some of them. No matter what the reason, I think it is very important (and extremely satisfying) to set aside an amount of money - no matter how small - for yourself each month. This can be in a short term savings account (standard savings, money market) or a longer term savings (401k, IRA). It really doesn't matter as long as you are contributing something - and doing in on a regular basis (so that you form a habit, and eventually you don't miss the money). We have a plan set up with our credit union where funds are transferred automatically to savings when we get paid. It has been amazing how little we miss the money and how much it has grown over the few years we have done this. For example, we put $5.00 per pay period in an account for each of our kids - Owen (our 3 year old) currently has $438.77 in his savings!

If you feel like you can't set anything aside, start small. There is nothing wrong with saving $5.00 per month. As you become a PRO saver/couponer you will find that you have more money to save because you have lowered your budget in other areas and you will find that you can increase that amount.

Savings is important, someday you may look back at this frugal time in your life and wonder what you have to show for it. If you have had a savings won't be wondering!

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